1. Estate Taxation in Malta
i. Lifetime gifts
There are no gift taxes in Malta. However stamp duty may apply on certain donations of immovable property.
There are no inheritance taxes in Malta. However, stamp duty may apply on the transfer in contemplation of death (causa mortis) of immovable property and of securities.
iii. Wealth tax
There is no wealth tax in Malta..
2. Succession Planning in Malta
i. Applicable law
In general, Maltese succession law applies to the estate of a deceased person who is domiciled in Malta and to immovable property situated in Malta.
In terms of the EU succession Regulation (regulation (EU) No 650/2012), a testator may choose the law of their nationality to apply to their estate.
ii. Wills in Malta
The Civil Code, Chapter 16 of the laws of Malta regulates the validity and forms of succession and wills. A natural person of sound mind who has full legal capacity to dispose of their assets may make a will.
iii. Restrictions on freedom of disposition
The Civil Code provides for a reserved portion in favor of the descendants and spouse of the deceased person, should any exist.
3. Trusts and Foundations in Malta
Trust and trustees Act, Chapter 331 of the law of Malta provides for the creation and regulation of trusts. All the main types of trust traditionally found in common law jurisdictions may be set up in Malta.
Private foundations are regulated by means of the second schedule to the Civil Code Chapter 16 of the Law of Malta. The law provides for two types of foundations:
- Private foundations established for the benefit of one or more persons;
- Purpose foundations established for non-profit purposes, charitable, philanthropic or other social purpose.
4. Matrimonial Issues in Malta
The community of acquisitions will automatically apply if the spouses did not establish a contract.
Same-sex partners have the possibility of opting for a civil union in Malta.
Same sex marriage is recognized in Malta.
On divorce the provision of maintenance is regulated by means of a contract of separation and the amount is decided on a case-by-case basis by the Family Court.
For more details of Rosemont’s Estate Planning and International Private Law services see https://rosemont-int.com/en/article/tax-estate-planning/estate-planning-en
Please contact your local Rosemont office for assistance.